David Warner has stood down from the captaincy of his IPL club, Sunrisers Hyderabad and lost a major sponsorship as the fallout from the ball-tampering scandal continues.

He follows in the footsteps of Steve Smith, who quit as captain of Rajasthan Royals for the forthcoming season.

Warner will also lose the lucrative sponsorship of electronics giant LG.

‘LG’s current sponsorship of David Warner is in the final weeks, and in light of recent events, we have decided not to renew our partnership,’ the company said in a statement.  ‘LG Australia will always look to work with ambassadors that share our core brand values and we take these relationships incredibly seriously.’

READ MORE: Smith quits as Royals skipper

Both Smith and Warner are on IPL contracts worth $1.8-million (about R22-million) as the highest-paid Australian players in the lucrative tournament.

Warner’s decision follows his suspension from the fourth Test in Johannesburg for his role in the ball-tampering plot. He, Smith and Cameron Bancroft were sent home for ‘bringing the game into disrepute’ amid outrage across the world.

Warner and Smith were instructed to stand down as vice-captain and captain of the team, respectively, midway through the third Test, when it emerged that ‘the leadership group’ had approved a plan to doctor the ball.

‘In light of recent events, David Warner has stepped down as captain of Sunrisers Hyderabad,’ said K. Shanmugam, CEO of the franchise. ‘The new captain of the team will be announced shortly.’

Bancroft’s contract with Somerset in the County Championship is also under threat.

Director of cricket Andy Hurry said the county was following events closely. ‘We are aware that Cricket Australia are following their internal processes.

‘We appreciate there is a lot of emotion, disappointment and media surrounding the on-field incidents during last Saturday’s third Test match in Cape Town and it is imperative we follow our appropriate processes that will enable us to make the right decision for us as a club in due course.

‘Therefore we will be awaiting the outcome of the Cricket Australia internal investigation.’

Photo: Brenton Geach/Gallo Images